Germany’s crude steel output increased by 13.2pc to 3.42mn mt in October from 3.01mn mt in the prior month, according to the World Steel Association (worldsteel).
The European country’s crude steel production has recovered faster than most other major countries in the region, growing 3.1pc compared with the prior year.
The recovery in steel demand was at first driven by robust domestic construction activity, though more recently local passenger car manufacturing has rebounded sharply. German car production climbed 3.5pc to 382,300 units in October compared with 369,3000 units in the prior month.
That said, the country’s construction PMI edged lower to 45.2 last month from a reading of 45.5 in September as data suggested a fall in steel-intensive commercial and civil engineering projects.
Local crude steel output has fallen by 15.7pc to 25.7mn mt through the first nine months of 2020 compared with 30.5mn mt during the same prior-year period.
Meanwhile, pig iron production has declined by 16.6pc to 18.1mn mt in January-October compared with 21.8mn mt through the first 10 months in 2019.
Looking forward, an increase in COVID-19 cases will likely hinder domestic vehicle production rates as consumers stay away from showrooms and are more reluctant to purchase new cars.
Furthermore, investments in steel-intensive construction and civil engineering projects will likely be deferred until some degree of economic stability returns to the country.